Over 75% of IFAs expect to see their business to grow in the next six months due to the impact of A-Day, research from Winterthur Life reveals.
The provider says the main drivers of business during the rest of the year will be self-invested personal pensions, executive pension plans (Epp) and the changes to the rules governing tax free cash.
Almost 60% of advisers expect to see their business grow by up to 25% and a further 18% expect their business to grow by more than this.
More than 70% of IFAs expect the removal of the need to buy an annuity to be a ‘significant’ benefit to their typical pension clients while almost 60% feel income drawdown changes will be of ‘significant’ benefit.
Since A-Day 53% of advisers say they have already seen enquiries rise.
Moreover, a third of advisers feel the inheritance tax impact on trusts will have a ‘very detrimental effect’ on their typical pension clients, with roughly half feeling it will have a ‘fairly detrimental’ effect.
David Thompson, director of distribution, at Winterthur Life UK, says the research findings underline how successful A-Day has been so far in regenerating interest in saving for retirement. He argues more flexibility around buying annuities, wider access to tax-free lump sums, concurrent pensions plans and higher contribution limits have all proved very attractive to a great many consumers.
Thompson adds: “The findings also support Winterthur’s own positive experience around A-Day. Pension sales grew strongly this year – up 54% on the first quarter last year - as advisers prepared for the new rules. Since A-Day the momentum has continued, with requests for quotes and new business up over 110% on May last year. In particular we have seen strong interest in Epps and section 32s, protected rights, unsecured pensions and alternatively secured pensions.“
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